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Chapter 7 bankruptcy for some home-based online clothing sellers

It appears that many women who own and operate home-based businesses selling Lularoe apparel and accessories are seeking bankruptcy protection. A review of 24 Chapter 7 bankruptcy cases in which the company was named found that many women experienced a steep decline in sales over recent years. That has left some with little option but to seek aggressive debt relief. For those in Washington who own and operate their own online retail venture, this story may serve as a cautionary tale.

Lularoe experienced enormous growth over the past few years. That success led many individuals to sign up as sales representatives. Online clothing sales have become very popular, and more and more people have been drawn to the idea of shopping for new clothing from the comfort of their own home. Quite a few sellers made solid incomes for one or more years before encountering difficulty moving their products. It's possible that the market simply became saturated, leading some retailers struggling to keep their business afloat.

Making matters worse, many of these women invested significant sums of money building their inventory. That investment sometimes came from savings, and other times was placed on credit cards. Once they encountered financial difficulty, these women sometimes faced significant debt.

Starting a home-based business is always a challenge. While some people enjoy incredible success for their ventures, other efforts simply fall flat. That may be due to outside conditions such as market fluctuations, or the failure to implement a solid business plan. No matter why a Washington resident encounters a cash crunch, Chapter 7 bankruptcy is there to help.

Source:, "At Least 24 Women Who Sold Lularoe Who Have Filed For Bankruptcy Since 2016", Stephanie McNeal, Nov. 6, 2017

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